As we head into Easter please remember that markets will be closed on Good Friday. As this week’s trading activity comes to a halt the Dow is facing its first selloff since the Trump rally began back in November. At the close the Dow was down 138 at 20,438 on higher volume. Geopolitical mega bombs are overcoming record bank earnings.
Consumer Sentiment advanced to a three-month high in April and optimism over the economy and their current financial situation for American’s reached its highest level in 17 years. The current conditions gauge rose to 115.2 from 113.2 and the “expectations” measure hit 86.9 up 0.4 from the prior reading. The expectations measure however remains divided by politics as 69% of Republicans cited favorable views versus 28% for Democrats.
Citigroup reported Q1 earnings today with revenue gaining 6% and net income up 23%. Both top and bottom lines exceeded guru expectations. Loans were up 2% and deposits grew 2% to approx. $950 billion. Fixed income trading was up a whopping 19%. Shares were higher on the news.
In similar fashion JP Morgan Chase reported a 9% increase in revenues and an 11% increase in profits. Both numbers came in better than expected as deposits grew 11% and loans were up 5%. CEO Jamie Dimon, in his message to shareholders, said “U.S. consumers and businesses are healthy overall and with pro-growth initiatives and improving collaboration between government and business, the U.S. economy can continue to improve,”
All in all the three big banks did well except for Wells Fargo which is trying to fix its broken axle from the account scandal. Bank earnings all addressed a spat of concerns relating to slowing C&I loans, rising defaults on credit cards, car loans and student loans to post overall record numbers. Total deposits between these three banks plus Bank of America, which reports Tuesday, now stand at roughly $5.1 trillion.